Accounting

My last two posts have been a detour from my regular themes, into something that might remind you of human resources. I’ve explained what Microsoft Dynamics consultant does , and how it looks through phases of Sure Step implementation, and I promised to conclude this journey with explaining what I…

They say the only constant is change. I’d say that the only other constant is error. We humans tend to err. Give a repeatable task to a human, and they’ll mess it up every once in a while. Some call it the human factor . One of the many repeatable tasks in Microsoft Dynamics NAV is setting up items.

When you buy a sheep, how much is it worth to you, what is its value? For starters, its value is at least what you paid for it, but that’s not quite it. Say you paid a hundred dollars for it. If you want to sell it now, how do you determine your selling price? A hundred-twenty? A hundred-fifty?

Unless you are a non-profit, the point of the business is making money. It is surprising how many different ways of making money there are out there, but if you are in business, it is extremely likely that you make the money the easiest and the most common way around: by selling goods.

Running a business using only accounting data can be pretty much the same as driving a car using rear-view mirror only. The purpose of accounting is to provide accurate and reliable overview of financial situation to interested parties. What this financial overview consists of is the stuff that has happened in the past, in other words: history.

When referring to their ERP systems, it is pretty common that customers refer to it as accounting software . While it is true that every ERP system embeds some accounting functionality, there is a major difference between these two categories of software.